NOTE 6 - STOCK OPTIONS AND WARRANTS

9 Months Ended

Mar. 31, 2017

Disclosure Text Block Supplement [Abstract]

Shareholders' Equity and Share-based Payments [Text Block]

NOTE 6 - STOCK OPTIONS AND WARRANTS

Prior Issuances of options

On December 1, 2015, 480,000 options were granted to the Company’s Chief Executive Officer (then our Chief Operating Officer) as part of his employment offer.  The options have a strike price of $0.10, vest December 1, 2016 and expire December 1, 2020.  

On January 19, 2016, the Board granted all non-executive Board members 100,000 options, with the audit committee chair receiving an additional 50,000 options, for Board services rendered for the Board term ending December 2016.  The options have a strike price of $0.10, vest at the end of the Board term in December 2016 and expire December 2019.  

On January 19, 2016, 50,000 options were granted to the Company’s Chief Financial Officer as part of renewal of her employment agreement.  The options have a strike price of $0.10, vest ratably January 21, 2016 to December 1, 2016 and expire December 1, 2019.  

Option issuances and vesting during the nine month period ending March 31, 2017

On December 1, 2016, 480,000 options were granted to the Company’s Chief Executive Officer as part of his employment offer.  The options have a strike price of $0.10, vest December 1, 2017 and expire December 1, 2020.  Year to date expense related to these options is $583 as of March 31, 2017. 

As of March 31, 2017, there was $ 1,021 of unrecognized stock-based compensation expense related to stock options that will be recognized over the vest period of the underlying option.

We estimated the fair value of the stock options granted in the current fiscal year above at the grant date based on the following weighted average assumptions:

Risk free interest rate	1.450	%
Expected life	3.0	years
Expected volatility	126.36	%
Dividend yield	0.00	%

Year to date expense related to these options is $15,660 as of March 31, 2017.

A summary of the status of our outstanding stock options as of March 31, 2017 and June 30, 2016, and changes during the periods then ended is presented below:

	March 31, 2017							June 30, 2016
			Weight Average		Intrinsic					Weight Average		Intrinsic
	Shares		Exercise Price		Value			Shares		Exercise Price		Value
Outstanding beginning of period		3,800,000	$	0.13					2,270,000	$	0.14
Granted		480,000	$	0.10					1,530,000	$	0.10
Expired/Cancelled		-	$	0.00					-	$	0.00
Exercised		-	$	0.00					-	$	0.00
Outstanding end of period		4,280,000	$	0.12		$	-		3,800,000	$	0.13		$	-
Exercisable		3,960,000	$	0.12		$	-		3,070,000	$	0.13		$	-

The following table summarizes the range of outstanding and exercisable options as of March 31, 2017:

		Outstanding						Exercisable
Range of Exercise Prices		Number Outstanding at March 31, 2017		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable at March 31, 2017		Weighted Average Remaining Contractual Life
$	0.08		150,000		4.67	$	0.08		150,000		4.67
$	0.10		2,680,000		2.35	$	0.10		2,360,000		2.35
$	0.17		1,450,000		3.67	$	0.17		1,450,000		3.67
			4,280,000						3,960,000

General Warrant Information

In September 2013, the Company obtained an extension on the remaining $100,000 secured convertible promissory note that was issued in the private placement that closed in September 2010.  This note was paid off as of June 30, 2015.   In exchange for the extension, the note holder received 500,000 common stock warrants and $6,500 in accrued interest and fees.  The common stock warrants expire three years from the date of issuance, are exercisable at $0.13 per share, and vest on the next date the value of Amerityre common stock reaches $0.25 per share.  As of September 30, 2016 the warrants expired.